(Yicai) May 8 -- Shares of Topsports International Holdings rose after China’s largest sportswear retailer secured the exclusive regional rights to sell products from Norrøna, a premium Norwegian outdoor brand.

Topsports [HKG: 6110] closed 2.2 percent higher at HKD3.22 (US 40 cents) in Hong Kong today, after climbing as much as 3.2 percent during intraday trading. The increase brought its market capitalization to around HKD20 billion (USD2.6 billion).

Topsports will be fully responsible for Norrøna’s brand promotion, marketing, sales channels, and consumer management in the Chinese market, Shanghai Observer reported yesterday.

The retailer is preparing to launch Norrøna’s sales channels, including opening online flagship stores and offline brand stores. It also plans to collaborate with sporting events and activities to reach core consumer groups, a source familiar with the matter told the same news platform.

Amid mounting performance pressures, expanding into the high-end outdoor category has become a key growth strategy for Topsports. Prior to the Norrøna deal, Topsports acquired exclusive regional rights to Norda, a Canadian trail running shoe brand, last May.

Founded in 1929, Norrøna specializes in outdoor sports gear, with products spanning skiing, mountaineering, trail running, mountain biking, and surfing. The brand briefly entered mainland China in 2016 but withdrew two years later due to lower-than-expected sales.

Topsports was originally a subsidiary of Chinese apparel and footwear giant Belle International, before being spun off and listed in 2019. It now operates under an agency model, distributing apparel and footwear for over 10 internationally renowned sports brands, including Nike, Adidas, and Puma.

Due to shifts in China’s consumer environment, Topsports has seen sluggish performance in recent years. In the six months ended Aug. 31 of last year, the company’s net profit fell 35 percent year-on-year to CNY873.8 million (USD120.7 million), while revenue dropped 8 percent to CNY13.1 billion (USD1.8 billion). The total number of stores declined by 5 percent to around 5,810, according to its latest financial report.

Editor: Emmi Laine